Touchstone Exploration Inc (LON:TXP, CVE:TXP) on Tuesday confirmed strong production growth in the first half of the year and told investors that it will now expand its new drilling plans for the remainder of the year.
The Trinidad-focused junior oiler intends to drill an additional four wells in the campaign, before the year’s end.
It expects to drill the wells across the WD-4 and WD-8 properties. It increases the capital budget by US$4.8mln though the company said the new wells are expected to add incremental production volumes in early 2019 and further bolster its growth plans.
In the second quarter, ended 30 June, drilled three new wells and performed four well recompletions – for a capital spending of US$4.52mln.
Financial results for second quarter
Tuesday’s second-quarter results statement confirmed average production of 1,717 barrels per day, an 11% increase on the preceding three months and a 29% improvement from the comparative period in 2017.
It realised some US$12.5mln of petroleum sales, up 68% from the same period last year, whilst the group’s operating netback improved by 92%. Funds flow from operations amounted to US$3.25mln, up from US$438,000 in the second quarter last year.
That being said, the company reported a net loss of $692,000, narrowed significantly from the US$1.84mln recorded for 2017 comparative.
At the end of June, Touchstone had US$10.55mln of cash and US$11.26mln of net debt.